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Global innovation teams receive an increasing importance in internationalizing firms. This study researches the effects of cultural diversity on team and innovation performance. Our qualitative and longitudinal study focuses on the effects through diversity of cultural values and of communication style within global innovation teams. From 105 interviews in five innovation teams at three different points in time, respectively stages of the innovation process, we develop a model containing several new assumptions. We find that diversity in context, time, and power distance play are strongly influential on the performance of global teams. Particularly, the feasibility stage is most strongly affected by cultural diversity.